MICROSOFT, DIGITAL FORM ALLIANCE MAKING WINDOWS-BASED SOLUTIONS THE NEXT
WAVE OF ENTERPRISE COMPUTING

SAN FRANCISCO -- Aug. 2, 1995 -- Digital Equipment Corp. and Microsoft
Corp. today announced a strategic alliance to meet customer demand for
Microsoft-based solutions and support in enterprisewide computing. The
alliance combines Microsoft client-server products with Digital's
leadership in enterprise systems, service, support and systems
integration, enabling customers to deploy business solutions on the
Microsoft Windows and Windows NT operating systems with assurance of
integration into the most complex business environments.

Highlights of the alliance include substantial funding by Microsoft in
Digital's support and systems integration business focused on
Microsoft-based solutions; Digital's commitment to train at least 1,500
new certified professionals for that business; commitment by Microsoft for
products on Alpha AXP-based systems; engineering cooperation;
cross-licensing of patent portfolios; Microsoft's licensing of Digital
clustering technology for inclusion in future Microsoft clustering
solutions for Windows NT; and joint marketing and field engagement.

"Customers want the volume applications, cost model, and flexibility of
PC-style client-server solutions, as well as the service, support, systems
integration and extremely high availability and scalability of enterprise
solutions," said Bill Gates, chairman and CEO of Microsoft. "This alliance
gives customers the best of both worlds. The complementary corporate
technologies, services and business strengths of Microsoft and Digital
will provide a safe, practical way to make Windows-based solutions the
next wave of enterprise computing."

"Digital's goal is to provide customers unsurpassed expertise in open
computing solutions," said Robert B. Palmer, chairman and CEO at Digital.
"Our strengths in systems, service, networking connectivity and systems
integration will extend the reach of Microsoft's client-server software
throughout the world's enterprises and deliver a competitive advantage for
customers."

Both Companies Fund Expansion of Digital Capability to Support Microsoft
Solutions

The alliance includes substantial funding by Microsoft in Digital's
worldwide Multivendor Customer Services and Systems Integration businesses
focused on Microsoft-based solutions. Digital is committed to develop a
global service and systems integration focus on incorporating Microsoft
technology in enterprise solutions. The services will include new
mission-critical capabilities. In addition to more than 800 Digital staff
already certified on Microsoft products, Digital is committed to at least
1,500 new certifications in 24 months, by far the largest number of
Microsoft Certified Systems Engineers known to Microsoft.

Microsoft also has selected Digital for the Launch Support Team of Windows
95 in the United States, and for the Enterprise Migration Program, which
assists resellers in successfully migrating corporate customers to Windows
95 and Microsoft Office for Windows 95.

Digital and Microsoft reconfirmed their commitment to Windows NT on
Alpha-based systems. Digital soon will introduce a family of Intel- and
Alpha-based systems optimized for Windows NT. Microsoft will release the
Microsoft BackOffice family and other server software simultaneously on
Alpha- and Intel-based platforms. Microsoft also will release Microsoft
Office and other client software simultaneously on Alpha-based and other
RISC-based systems. This is in addition to a recent agreement that allows
Digital to offer Microsoft BackOffice products on Digital AlphaServer
systems and Intel-based Digital Prioris PC servers.

Engineering Cooperation, Technology Licenses Part of Pact

As part of the agreement, a Digital engineering group will be on site at
Microsoft for Alpha-related development and product integration. Microsoft
will provide technical cooperation for product support and engineering and
will provide Digital with access to Microsoft source code and engineering
consulting resources.

The companies have executed a cross-licensing agreement on patent
portfolios to facilitate cooperation. In addition, Microsoft has licensed
Digital clustering technology for inclusion in future Microsoft clustering
solutions to help accelerate deployment of common clustering technology on
Windows NT Server. Digital is the inventor and market leader in
clustering, which allows a set of servers to act as one.

Integration of mail products is another part of the alliance. Microsoft
will support Digital developing interoperability between Digital's
ALL-IN-1 and MAILWorks products with Microsoft Exchange Server. Digital's
more than 5 million mail customers will be able to use Microsoft Exchange
Server and benefit from Digital's enterprise extensions for that product.
Digital will also use Microsoft Exchange Server internally: Digital's
enterprise mail backbones will embrace Microsoft Exchange Server as
Digital groups begin to use Microsoft Exchange-based applications.

Digital is accelerating programs to integrate its OpenVMS systems with
Windows NT, including client-server applications support, data and system
management, additional enterprise features, clustering, and network
integration with Windows NT and Microsoft ackOffice. Microsoft will
support Digital with its commitment to make OpenVMS the most integrated
system with the Windows environment by providing Digital with access to
source code and consulting engineers. Digital is also committed to
providing the best interoperability between the Windows family and UNIX
systems, including out-of-box integration between Windows and Windows NT
with UNIX servers, integrated security, object interoperability via
COM/ObjectBroker, and support for the Win32 APIs on Digital UNIX.

ISV Recruitment

Digital and Microsoft will work together to evangelize the alliance to
independent software vendors (ISVs). The companies will jointly target
ports to Windows NT on Alpha systems. They will encourage OpenVMS ISVs to
write to Win32, OLE object technology and other Windows Open Services
Architecture (WOSA) APIs, which are available on Windows NT Server today
from Microsoft and which Digital will provide for OpenVMS. For certain
high-end applications, the companies will encourage ISVs to write to
Win32, OLE and other WOSA APIs on OpenVMS to obtain 24x365 support,
disaster tolerance and the greatest cluster scalability. Digital plans to
provide developer kits for three-tier client-server applications.

Joint Marketing and Field Engagement

Digital and Microsoft will put in place a marketing plan with a joint
management committee to oversee marketing programs to customers. This
effort will greatly expand existing programs such as hands-on technical
labs at Networld + Interop in spring 1995, a corporate seminar series
recently concluded in Japan, a fall 1995 advertising campaign, Digital
integration and services for Windows 95 and Windows NT, and cross-training
of sales forces. Both companies will commit local field personnel and
worldwide regional management to work together and jointly engage major
customers.

Digital also plans to establish Microsoft Enterprise Competency Centers
worldwide to help customers, developers and others integrate Microsoft
solutions with other solutions. The first center is slated for the
Seattle, Wash., area.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing every day.

Digital Equipment Corp. is the world's leader in open client-server
solutions from personal computing to integrated worldwide information
systems. Digital's scalable Alpha platforms, storage, networking, software
and services, together with industry-focused solutions from business
partners, help organizations compete and win in today's global
marketplace.
 
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